The outcome of a case being heard by the Golden State’s highest court could have a big impact on lenders that charge high interest rates.

California’s Supreme Court is hearing oral arguments in a lawsuit filed against CashCall Inc., a subsidiary of Impac Mortgage Holdings Inc.

At issue is whether the state’s courts can determine on a case-by-case whether or not an interest rate charged by a lender is”unconscionable.”

Source: Mortgage Daily